Why Form A Company in Ireland?

Considerations:

The new 2014 act in Ireland makes it easier for Directors to manage a company. It is the goal of the Irish Government to make Ireland the easiest place in the world to do business.

Ireland has a low 12.5% Corporation Tax rate and is a pro business environment.

Low Share Capital Requirement, as low as €100

There is Limited Liability on Shareholders. Shareholders only risk the share capital they invest.

Ireland is an English Speaking Jurisdiction, the only one in the Eurozone.

Ireland offers free access to over 500 Million consumers in Europe.

Ireland is ranked in the top 10 easiest places in the world to do business.

There are generous Research & Development tax credits.

A Company is a legal entity in itself. It is completely separate from the Officers and the people who run it. It is the company that legal action is taken against as a result of unpaid debts for example.

A limited company has greater ability to raise finance by the issue of shares.

The limited company name is protected.

The company is protected against sudden changes to Management structure.

Employees can acquire shares in the company.

Making changes to the company is relatively simple.

Taxation:

Directors pay income tax and the company pays corporation tax on company profits, and with current rates of tax company profits earned and retained in the business are assessed to corporation tax at lower rates than if income tax were payable on equivalent profits earned by an unincorporated business

Scope for greater company pension scheme to be secured through a limited company

Personal tax advantages can accrue for directors of a limited company

Corporation Tax Comparison Chart

LOCATION

Corporation Tax %

Ireland

12.5

Lithuania

15

Romania

16

Hong Kong SAR

16.5

Singapore

17

Slovenia

17

Switzerland

17.92

Hungary

19

Poland

19

Croatia

20

Finland

20

Iceland

20

Jersey

20

Russia

20

Turkey

20

United Kingdom

20

Portugal

21

Slovakia

22

Sweden

22

Denmark

23.5

Austria

25

Netherlands

25

Uruguay

25

Greece

26

Canada

26.5

Norway

27

New Zealand

28

South Africa

28

Spain

28

Luxembourg

29.22

Germany

29.65

Australia

30

Italy

31.4

Japan

33.06

France

33.33

Belgium

33.99

United States

40

United Arab Emirates

55

Maximising the tax benefits of a limited company

One of the main focus for small businesses will be the maximising benefits to minimise tax. This can be done by: